Lula rejects spending cuts and defends fiscal policy
Graduated in journalism from the State University of Bahia. Has worked at newspapers JC Concursos, Folha de S.Paulo, and O Estado de S.Paulo. Was a reporter for the portals Datagro and Broto. Is a reporter for Revista Oeste since March 2026.
TL;DR
- President Lula stated that low-income populations will not be subjected to sacrifices to balance public accounts.
- He compared Brazil's debt-to-GDP ratio favorably against that of the United States, France, Japan, and Italy, claiming their debt is double Brazil's.
- Lula requested that the fiscal situation inherited by his government in 2023 be considered in analyses.
- He highlighted that the government inherited a deficit of 2.8% and is preparing a budget with a surplus.
- Economists and the financial market are demanding government spending cuts, particularly in areas like pensions, social assistance, and public sector salaries.
- The government opposes linear cuts and advocates for preserving investments in health, education, and social assistance, alongside reviewing tax benefits and parliamentary amendments.
- Lula expressed dissatisfaction with the year's end results, wishing for 10% economic growth, zero unemployment, and a minimum wage of R$5,000.